NEW YORK — U.S. homebuyers are encountering more choices, easing prices and slower sales activity this spring, but affordability pressures and renewed mortgage rate volatility continue to limit purchasing power, according to a new housing market report from Realtor.com.
Realtor.com’s Spring 2026 Housing Market Progress Report found active housing inventory continued to recover nationwide, with April marking the 30th consecutive month of annual inventory growth following the supply shortages that emerged during the pandemic housing boom.
Despite the gains, housing supply in many markets remains below pre-2020 levels, according to the report.
Price Decline
The report also found signs of continued price moderation.
National median list prices in April declined 1.4% year over year, extending a six-month streak of annual price decreases. Homes also remained on the market longer than a year earlier across most regions, suggesting a slower and more balanced spring selling season compared with the highly competitive conditions seen during the pandemic.
Realtor.com economists said affordability remains the market’s primary constraint, even as conditions improve modestly for buyers.
Mortgage rates, which eased earlier this year, moved higher again in May as Treasury yields climbed and geopolitical uncertainty increased. According to the report, average 30-year mortgage rates returned toward the upper-6% range, reducing affordability during the peak spring buying season.
While inventory growth and more frequent seller price reductions have improved negotiating conditions for buyers compared with last year, elevated borrowing costs continue to offset much of that benefit.
Regional Trends
Regional housing trends varied considerably, according to Realtor.com.
Among the report’s findings:
- The Northeast and Midwest continued to post relatively stronger market conditions, supported by tighter inventory levels and firmer pricing.
- The South and West experienced larger price declines and more widespread seller concessions as inventory growth outpaced buyer demand.
- Nearly 19% of listings in the South included price reductions in April, compared with just over 10% in the Northeast.
- Active listings rose 9.3% year over year in the Northeast and 11.5% in the Midwest, while inventory growth in the South slowed to 1.8%.
